Maharashtra has finally toppled Gujarat as the most sought-after destination for global and domestic investors. Gujarat recorded a growth rate of just over two per cent among 21 leading States in India during the past five years, while Maharashtra notched up a 10 per cent growth rate, according to a study concluded by industry organisation ASSOCHAM.
“Maharashtra, Gujarat and Odisha have emerged as most lucrative investment destinations as they together account for over one-fourth share (26.6 per cent) in the total outstanding investments worth over Rs 154 lakh crore attracted by various sectors from both public and private sources across major 21 States in India as on December 2014 which grew from Rs 105 lakh crore as on December 2009,” the ASSOCHAM study titled, ‘A Comparative Analysis of Investment Pattern in States,’ said.
“With a share of about 10 per cent, Maharashtra has ranked on top, attracting investments worth over Rs 15 lakh crore as on December 2014 closely followed by Gujarat (9.2 per cent share), while Odisha (7.5 per cent), Karnataka (6.8 per cent) and Tamil Nadu (6.5 per cent) are other states with significant share in this regard,” the study prepared by the ASSOCHAM Economic Research Bureau (AERB) said.
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D.S. Rawat, Secretary General, ASSOCHAM in a statement said: “Investment is the key driver of productivity and sustainability that leads to development and growth making most state governments to strive to better the investment climate prevailing in their respective states to make them conducive to attract domestic and foreign investors.”
According to the study with investments worth over Rs 84.5 lakh crore, private sector accounted for almost 55 per cent share in total investments attracted by 21 States in India.
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While investments attracted from public sector grew at a compounded annual growth rate (CAGR) of just over 11 per cent, the investment from private sector grew at just about five per cent during the five year period of December 2009-December 2014.
Private sector accounted for highest share of over 81 per cent in the total outstanding investments attracted by Haryana. While in Gujarat private sector accounted for 74 per cent share in total investments attracted by the State as on December 2014.
Gains in infrastructure
Infrastructure sector accounted for 64 per cent in terms of total investments made by public and private sectors (both foreign and domestic) across India followed by manufacturing (20 per cent), construction (9.5 per cent), mining (3.5 per cent) and irrigation (three per cent).
Similarly in Gujarat, infrastructure accounted for highest share of 57 per cent in total investments attracted by the western state followed by manufacturing (25 per cent), construction (13 per cent), mining (three per cent) and irrigation (two per cent) as on December 2014.
Maharashtra had maximum share of over 10 per cent in projects under implementation followed by Karnataka (7.4 per cent), Gujarat (7.4 per cent), Odisha (seven per cent) and Tamil Nadu (6.5 per cent), the study said.
Gujarat recorded a growth rate of just over 2%, while Maharashtra notched up 10%